Events:
The company issues the annual report of 2022 and the quarterly report of 2023: revenue of 1.017 billion yuan (yoy-3.33%) in 2022, net profit of 240 million yuan (yoy-1.77%) and non-return net profit of 214 million yuan (yoy-4.76%), and net cash flow of 311 million yuan.
In 2023, Q1 has a revenue of 305 million yuan (yoy+22.77%), a net profit of 71 million yuan (yoy+16.48%), a net profit of 70 million yuan (yoy+15.58%) and a net cash flow of 25 million yuan.
Comments:
1. In 22 years, the revenue of raw materials and drugs decreased by 11.5% compared with the same period last year, resulting in negative revenue growth, and 2023Q1 revenue returned to growth trend.
In 2022, the company achieved revenue of 1.017 billion yuan (yoy-3.33%), product sales income of 878 million yuan (yoy-5.42%), technical income of 84 million yuan (yoy+24.50%), and equity income of 51 million yuan (yoy-7.27%). Among them, the API product income of product sales income is 777 million yuan (yoy-11.51%), which is mainly affected by the periodic fluctuation of customer demand for antiviral products entecavir API and the decline in the price of antifungal products; the income of preparation products is 100 million yuan (yoy+102.46%), mainly affected by the increased demand for oseltamivir phosphate preparation caused by the seasonal outbreak of influenza. 2023Q1 gradually returned to a good growth trend. 2023Q1 achieved revenue of 305 million yuan (yoy+22.77%), net profit of 71 million yuan (yoy+16.48%), and non-return net profit of 70 million yuan (yoy+15.58%).
two。 The dual layout of "industrial chain integration + globalization" protects the sustainable development of the company.
The company actively distributes globalization and improves the industrial chain, through the whole industrial chain of "starting material → difficult intermediate → characteristic API → preparation", opening up overseas markets and enriching product pipelines by building factories overseas and investing in innovative technology companies. In 2022, the company invested an additional US $483000 in Boren Indonesia, accounting for 48.30% of its total shares, and a number of drugs have been approved to be listed in Indonesia. At the same time, a number of pharmaceutical intermediates and API products independently developed and produced by the company have been registered with DMF in major international market countries and China, and the company's products have been sold in more than 40 countries around the world.
3. In 2022, R & D expenditure will increase by 19.47% compared with the same period last year. Five major R & D technology platforms will set up competition barriers and broaden the product line.
In 2022, the company's R & D expenditure was 207 million yuan (yoy+19.47%), accounting for 20.35% of revenue. At present, the company has formed five independent intellectual property technology platforms of "fermentation semi-synthetic, multi-chiral drugs, non-biological macromolecules, medicine and equipment combination platform, coupling drug platform", which has the characteristics of great technical difficulty and high barrier to entry. The direction of research and development includes innovative drugs and high-end generic drugs. In the innovative drug side, the long-acting peptide targeting coupling drug BGC0228 independently developed by the company is in the clinical Ⅰ phase trial, and the peptide hypoglycemic drug BGM0504 injection has been approved to carry out weight loss and clinical trials; in the generic drug side, class 2 drugs are in the stable stage, class 1 drugs have entered the pilot test stage, class 3 drugs are in the pilot test stage, and class 2 drugs have completed the pilot trial. In 2022, the company obtained 7 domestic patents and 5 foreign patents.
Profit forecast: we expect the company's net profit from 2023 to 2025 to be 287 million yuan, 361 million yuan and 455 million yuan, an increase of 19.96%, 25.58% and 25.95% respectively over the same period last year, and the corresponding PE valuations are 35, 28 and 22 respectively.
Risk hint: the risk that the progress of new product research and development is not as expected; the market expansion and sales are not as expected; the risk of product collection and price reduction is higher than expected.